Bush, Outsourcing, Offshoring, Protectionism, Jobs
[SharedXpertise Commentary] President Bush rejects protectionism
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For SharedXpertise Commentary, please see below.
While on a landmark tour of India, US President Bush declared that the US Government was against taking any protectionist measures against outsourcing to countries like India due to concerns of job loss.
While interacting with a young group of entrepreneurs at the Indian School of Business, Bush declared, "I have taken a position. The US will reject protectionism. We won't fear competition. We welcome it." His comment on outsourcing received enthusiastic response.
While stating that his Government would provide an environment for young students seeking to pursue higher studies, Bush said that people lose jobs due to globalization and "losing jobs is painful. But the fundamental question is how the Government tackles this...One should not forget globalization has also opened up jobs."
Bush, who has an MBA from Harvard, takes the long view of what he sees as outsourcing's likely effects.
"The classic opportunity for our American farmers and entrepreneurs and small businesses to understand is there is a 300 million-person market of middle class citizens here in India," Bush said.
Bush is pushing ahead with trade deals and economic pacts and trying to manage public perceptions about outsourcing. Noting that U.S. imports to India increased 30 percent in 2005, he said economic cooperation between the two will help the U.S. economy and benefit India.
SharedXpertise Commentary:
Let's take politics out of sound economic decisions.
The SharedXpertise staff represents a wide spectrum of conservatives and liberals. For possibly the first time, we are all in solid agreement with Mr. Bush. Protectionism does not serve its people, only the careers of politicians.
Outsourcing and offshoring are economic realities for good reasons. Companies and organizations that outsource not only are more efficient, but can focus better on mission-critical tasks. Yes, jobs are lost due to offshoring, and Mr. Bush wisely acknowledged the pain and discomfort associated with those job losses. But simply, protectionism won't protect those jobs in the long run. A non-competitive economy will see the life slowly but surely sucked out of it.
In the longer term the American economy has more to gain by improving trade relations with India as the increased exports and business opportunities will create more jobs and wealth for Americans.
Fear of job losses is running high in the IT sector. But a number of experts point out that job loss claims are exaggerated: "The global competition has gotten tougher, and we have to run faster," said Moshe Vardi, co-chairman of the study group and a computer scientist at Rice University in Houston, "but the notion that information technology jobs are disappearing is just nonsense. The data doesn't bear that out."
Just recently, the Organization for Economic Co-operation and Development (OECD) released a study showing no definite link between the decline of employment in the services sector and offshoring, although they go on to say that one in five jobs in the services business segment could be affected as a result of offshoring. Further, the study found that the availability of offshore outsourcing services has stimulated the development of new business segments dependent on these services. (Click here to see this news item)
As a previous US President noted, "There is nothing to fear but fear itself."
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